An investment in a house is an investment for life and must be carefully protected against accidents and unfortunate events. Any mechanical damage or even the smallest fire outbreak can damage property beyond repair. Property insurance, therefore, facilitates homeowners’ compensation for the loss of any property.
Such insurance is necessary for all types of properties, including those for personal use and rental. It begins by determining your needs and eligibility for property insurance.
This article provides information and details concerning House insurance in all aspects. So, read on and then apply for a House insurance policy.
What Is Property Insurance?
Insurance typically protects premises from all the possible risks that landowners or tenants encounter during their ownership or rental period. This includes many more covers, such as home insurance, apartment insurance, renters’ insurance, mobile home insurance, and landlord insurance encompassing even more than just basic property coverage. In addition, House insurance India may contain extensions such as earthquake insurance and flood insurance if the normal home and renters policies are insufficient to cover certain damages.
Every kind of property insurance policy is characterised by its coverage features. Homeowners insurance usually offers coverage on dwelling under the homeowner’s policy, and renters insurance does not have this as damage to the building or house itself is not covered.
Common Types of Property Insurance in India
There are numerous varieties of property and liability insurance plans on the market. Here are some typical Home insurance policy types to help you better comprehend them.
Renter’s Property Insurance
Renter’s insurance takes money from you, and in return, it covers you for any damage done to your belongings due to man-made or natural calamities while residing inside a rented property. Under the cover, belongings such as jewelry, expensive electronic equipment, furniture, and others are listed as insurable items.
In addition, most renters insurance policies tend to have a liability section to cover harm that can come against the landlord. The renter’s insurance is also for commercial use. Business owners obtain renter’s insurance coverage when they store their business property or goods in third-party storage units.
Homeowner’s Property Insurance
Home insurance or homeowner property insurance is amongst the most commonly known types of asset insurance in India. This Best home insurance in India provides financial support to a homeowner or anyone needing security against damages incurred on personal property, either as a result of natural or man-made calamities. These include fire, theft, earthquakes, and burglary. Such policies cover the perimeter of your property and the belongings kept inside it. Additionally, losses due to bursting or overflowing water tanks and pipes have also been covered by certain illustrious insurance companies.
Commercial Property Insurance
By commercial property insurance, specifically, we refer to that kind of cover available for properties used for regular business. It provides coverage for loss or destruction resulting from a disaster, whether natural or man-made, to tangible items.
Commercial property insurance is distinct from commercial general liability insurance. Commercial Building insurance protects a business from loss and damage to property. In contrast, commercial general liability insurance protects against injuries on the business’s premises and damages caused to others.
Fire Insurance
Fire is the primary cause of property damage. As there can be various reasons for an accidental fire, the property owner must spend a lot of money on repairs. So, one must buy fire insurance for both commercial and private properties. Note that such a policy will not cover damages caused due to an intentional fire set with disregard for safety.
Public Liability Property Insurance
Public liability property insurance is one of the most popular forms of P&C insurance purchased by business owners across India. A policy provides financial compensation against any damages caused to a third party owing such property. The Environmental Protection Act of 1986 has made it mandatory for business owners like café or car garage owners- to take out a public liability property policy.
Benefits of Home Insurance
The primary function of any home insurance policy is to offer risk coverage. Here are the benefits that a property insurance cover offers :
- Home Structure Protection: Home insurance companies pay for the reconstruction or repair of your home when it is ruined by fire, tornado, hail, or similar calamities.
- Belongings Insured: Insurance protects personal property like furniture, electronics, and electrical equipment that is destroyed by fire, theft, or natural disasters.
- Third-party liability protection: Your home insurance policy will cover any injury or damage suffered by your neighbour or any third person resulting from your action. It also covers legal expenses in case a court trial becomes necessary, though the amount differs for different policies.
- Coverage of living costs: Such insurance will cover your additional living costs, such as when you must move into a lodge or hall until your home is fixed if it has suffered damage from natural disasters or human-made catastrophes.
Eligibility Criteria For Buying A Property Insurance Policy
There are different eligibility criteria set by various insurance companies for obtaining property insurance. Here are the important aspects to consider:
- Ownership of property: To get property insurance, one has to be the legitimate owner of commercial buildings, residential houses, or even empty land and possess the necessary documentation as proof.
- Type of property: Insurance policies differ for standalone houses, apartments, office spaces, and industrial property.
- Value of a property: There is a minimum property value requirement for insurance policies set by different insurance companies.
- Condition of the property: The property gets assessed before issuing the policy to ensure that the building is in good condition.
- Location: Properties situated in high-risk areas, such as those prone to earthquakes and floods, often attract higher insurance premiums.
- Detailed documentation: For any policy application, it is imperative to submit proof of ownership, identity, and address, among other documentation.
- Maintaining financial stability: Your credit history and high CIBIL score would help you get better interest rates on your policy.
- Property age: As a rule, old properties become complicated cases and may face difficulty in obtaining insurance coverage.
- History of previous claims: A history of repetitive claims may result in rejection of the policy application.
Property insurance: Things to Consider Before Choosing a Policy
Deciding on property insurance requires a property owner to analyse a vast number of options available and some of the important factors to be considered are:
Coverage
The policy should protect against natural calamities, fire, theft, and any other risk possible. Check whether the policy extends coverage on both the structure and contents and any associated structures on the property.
Premiums
Look at the premiums of different insurance providers. Find a plan that is a good balance between affordability and adequate coverage. Also, check for any other discounts or offers that may be available.
Deductibles
Confirm the amount of deductibles mentioned in the policy. A higher deductible might lower premiums, but it would mean shouldering more out of the pocket in case one needs to present a claim.
Claim Settlement
Investigate the insurance claim settlement process. Find a provider with a good track record of timely and fair claims settlement.
Customer Service
Look into the insurance company’s customer service reputation. Read reviews and ask for referrals from others who have dealt with the company.
Additional Coverage
Investigate whether any supplemental features are provided as part of the policy, such as insuring valuables or liability coverage. Compare this to your personal needs, and then select a policy that best covers your needs.
Conclusion
Property insurance is an important asset that can protect your possessions against unforeseen events. The demand for insurance is increasing, and the premiums are higher, so finding the right policy to ensure more coverage is imperative. It is advisable to keep oneself updated about the latest developments concerning property insurance to make informed choices.